Are Extended Car Warranties a Good Deal

Extended warranties often get a bad press. It is often said that they are a waste of money, however it can depend on the warranty and what it is for. A new car will come with a warranty for a certain time period. However, once this runs out, you will have to pay for any repairs or parts yourself. This often is necessary after the original warranty runs out and so can be expensive. Even with a second hand car, it is possible to have a warranty and buy an extended warranty. There is a selection of things that you should consider when deciding whether to buy a warranty or not.

Price

It is important to look at the price of an extended warranty. Consider whether you can afford to pay the fees and also whether you can afford to pay for any repairs that might be necessary on the vehicle. An extended warranty is rather like insurance, in that you pay a regular amount and then will make use of it when you need it. There is always a risk that you may not need it, but it does provide you with peace of mind. You have to decide whether the cost is worth it.

Condition of Car

If you have a brand new car, then it should not need to be repaired for quite a while. However, a second hand car may be less reliable and therefore may be more likely to need work on it at times. However, you will probably find that the cost of an extended warranty on a new car will be less than on an older car and so you will have to decide whether you think that it is worth it.

Repair Price

It is worth considering how much repairs might cost you if you need them. If you have a vehicle that has expensive parts, for example, then it may be difficult for you to be able to afford them. You may find the cost of repairs too expensive anyway. You may find it easier to pay a regular sum to cover a warranty so that you will have no nasty surprises with regards to repair costs. However, you may decide that you would rather save the money and then pay for any repairs yourself.

It is impossible to predict the future and know whether it is worth paying for an extended warranty on a car. You will just need to decide whether you think you will be able to afford a repair if you need one done or whether it might be better to pay for a warranty that will cover that cost.